Linked by Thom Holwerda on Wed 22nd Nov 2006 22:50 UTC
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I think you have Microsoft wrong. If they have a division that actually produces products, then they keep it going despite the losses until they finally succeed. If they let accountability to shareholders get in their way, then MSN would be long gone, rather than now being "Live". This is part of the reason for their success.






Member since:
2005-11-14
Sony looses around 250-400$ on EVERY SINGLE PS3 sold, and has to make it back in game sales and peripheral (currently under a 1:1 sales ratio, horrid) So no their console business is NOT profitable
Agreed.
Nintendo makes a profit on every console and every game, primarily because of the outdated hardware in the wii unit itself. But it does make profit none the less per console sold
Agreed, except for the outdated part. But I guess if it's not the very latest best, it's outdated to you. Whatever.
The 360 is estimated to be loosing about 50-100$ per console at this point, with further cost cuts inline in 2007 to bring it to profit per console, and has a 5.2:1 game ratio and also a high accessory ratio... so they are much closer to profit than sony is, and will probably reach that in mid to late 2007
Given that very few XBox360 games attained the 1 million copies sold, your 5.2:1 game ratio doesn't bode well to the actual number of XBox360 sold worldwide.
Yes, I know they shipped nearly 7 millions, but that's only shipped, not sold. In Japan, where it matters, if Sony had the supply, they'd have caught up with the XBox360 in 2 months time !! Japan is also interesting, as they have the channels to tell you the actual number of console SOLD, they don't care about shipped. And by my calculations, there are less than 200 000 XBox360 sold in Japan by now.
Sony is razor thin on their success, 2006 only showed ~$678 million in net profit, a billion dollar loss would have sent them majorly into the red, and its estimated witht he large loss they are taking on each console as well as low adoption rate of games, 2007 could be even worse than last year
This would be true if only you took the Console division alone. But that's not what you did, so all your conclusions are wrong.
What you are saying here takes into accounts things like laptop battery recall, which have nothing to do with console division.
On the other hand microsoft did 3BILLION dollars net profit
Same error here. MS console division sure enough is in the red. Sales of Windows and Office have nothing to do with consoles.
and nintendo did $715 million still more than sony...
Only this one could be true, but then again, it takes handheld into account ... They are still consoles, but not the type we're talking here, so not very useful to compare to PS3 and XBox360.
So lets see microsoft is a big daddy because of all its other business so it doesnt have to worry about losses really to get the consoles out the door
You got to be kidding ! Your simplified view of a plubicly traded company is bizarre. If a division loses money for too long a time, you can be sure MS has to worry of how to justify it to shareholders (and they do).
and sony with it's entertainment connections and electronics and all that other stuff still didnt manage to pull off as much profit as little nintendo did in 2006
But don't compare apples and oranges. Most of the Nintendo profit is not from the Gamecube though. But Gamecube related sales more than paid for the development of the Wii.